AEO vs. JWN, ANF, GPS, URBN, FL, BKE, CAL, GES, SCVL, and DBI
Should you be buying American Eagle Outfitters stock or one of its competitors? The main competitors of American Eagle Outfitters include Nordstrom (JWN), Abercrombie & Fitch (ANF), GAP (GPS), Urban Outfitters (URBN), Foot Locker (FL), Buckle (BKE), Caleres (CAL), Guess? (GES), Shoe Carnival (SCVL), and Designer Brands (DBI).
American Eagle Outfitters (NYSE:AEO) and Nordstrom (NYSE:JWN) are both mid-cap retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, community ranking, analyst recommendations, media sentiment and institutional ownership.
American Eagle Outfitters has a net margin of 3.23% compared to Nordstrom's net margin of 0.91%. Nordstrom's return on equity of 49.30% beat American Eagle Outfitters' return on equity.
97.3% of American Eagle Outfitters shares are owned by institutional investors. Comparatively, 88.7% of Nordstrom shares are owned by institutional investors. 7.3% of American Eagle Outfitters shares are owned by insiders. Comparatively, 5.8% of Nordstrom shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
In the previous week, Nordstrom had 3 more articles in the media than American Eagle Outfitters. MarketBeat recorded 32 mentions for Nordstrom and 29 mentions for American Eagle Outfitters. Nordstrom's average media sentiment score of 0.60 beat American Eagle Outfitters' score of 0.47 indicating that Nordstrom is being referred to more favorably in the news media.
American Eagle Outfitters has higher earnings, but lower revenue than Nordstrom. Nordstrom is trading at a lower price-to-earnings ratio than American Eagle Outfitters, indicating that it is currently the more affordable of the two stocks.
American Eagle Outfitters pays an annual dividend of $0.50 per share and has a dividend yield of 2.1%. Nordstrom pays an annual dividend of $0.76 per share and has a dividend yield of 3.5%. American Eagle Outfitters pays out 58.1% of its earnings in the form of a dividend. Nordstrom pays out 95.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
American Eagle Outfitters received 146 more outperform votes than Nordstrom when rated by MarketBeat users. Likewise, 64.34% of users gave American Eagle Outfitters an outperform vote while only 58.74% of users gave Nordstrom an outperform vote.
American Eagle Outfitters presently has a consensus target price of $24.44, indicating a potential upside of 1.68%. Nordstrom has a consensus target price of $16.69, indicating a potential downside of 22.36%. Given American Eagle Outfitters' stronger consensus rating and higher probable upside, research analysts plainly believe American Eagle Outfitters is more favorable than Nordstrom.
American Eagle Outfitters has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500. Comparatively, Nordstrom has a beta of 2.59, meaning that its stock price is 159% more volatile than the S&P 500.
Summary
American Eagle Outfitters beats Nordstrom on 14 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding AEO and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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